Private Label Dropshipping: How It Works & Best Suppliers
Quick answer: Private label dropshipping means you sell products made by a supplier under your own brand (logo, labels, packaging), while the supplier or a fulfillment agent stores the stock and ships each order directly to your customers. Compared with regular dropshipping, it builds a recognizable brand, customer loyalty and better margins, but usually needs a first branded batch and a supplier that can handle custom labeling.
Private Label Dropshipping business is a new strategy adopted by many dropshippers and entrepreneurs. If your eCommerce business is also under the pressure of developing products, then private label dropshipping is a good choice. It can be achieved with a minimal up-front investment of time and money.
But what exactly is a private label, and how does it fit in with dropshipping? Continue to follow this page.
What is Private Label Dropshipping?
Dropshipping model enables retailers to sell products directly to customers without holding inventory. And the delivery of the product is entirely handled by the wholesale supplier. Therefore, there are many dropshipping sellers whose products sell well, then they have the idea of building their own brand.
This is how the Private Label Dropshipping model came about. This model works like this: You order products from suppliers, label them with your own brand, and sell them in your online dropshipping store. After a customer places an order, the supplier ships the product directly to the customer. This means you are selling private label products. But in fact, the source of goods still comes from suppliers. You still don’t hold inventory in this mode. The purpose of private labels is to increase the loyalty of customers to their products.
Note in particular that the private label is different from the white label. We have distinguished between the two in another article, click to learn more.
But you need to understand the difference between private label and dropshipping in order to better combine the two e-commerce business models.
Dropshipping vs. Private Label
Dropshipping
Selling supplier’s products.
Ships after the product is sold.
No inventory.
The supplier ships the goods.
Outsourced warehouse management processes.
Private Label
Selling the products manufactured by the supplier according to the seller’s own specifications.
Products are made or labeled in advance, usually with a minimum order quantity.
The seller is responsible for the inventory and shipping of the goods.
Go straight into marketing and sales instead of R&D.
Benefits of Private Label Dropshipping
Loyal customers
Because private label products carry our unique labels, this increases the credibility of the products with loyal customers. Conducive to our long-term profits.
Low start-up costs
Unlike a standard private label, private label dropshipping requires very little initial investment.
Competitive
Customers distinguish our products from ordinary products through customized logos and packaging. Even if the product is the same, the unique appearance of the private label will be preferred by customers.
More freedom to develop
Since the inventory and delivery of products are done by the suppliers, our time can be used to expand the dropshipping business.
Quickly update products
When we find new niche trends in the market, we can quickly order and sell these products. In contrast, non-private-label niche companies cannot suddenly start selling popular products because they need to plan carefully.
Best Private Label Dropshipping Suppliers
Whether you are doing dropshipping business in the United States or globally, finding high-quality private label suppliers to cooperate with is the most important thing. You might be tempted to start with a local dropshipping supplier, but often they don’t have the means to help you add product logos to your products, and they can be very expensive. You have many options. The best way is to choose a worldwide dropshipping supplier, especially Chinese suppliers, to help you source your products in China and put any logos on them.
Here are the best dropshipping suppliers:
Alibaba
Thousands of reliable manufacturers can be found on the Alibaba platform. With about 6000 different categories and a large number of private-label products. And the cost of private labeling is low. Customer support is an important part of Alibaba’s success. But ordering on Alibaba requires a higher minimum order.
AliExpress
AliExpress is the most popular website to buy cheap goods from China. It does not provide private label services but can connect us with private label suppliers.
SupplyMeDirect
Entrepreneurs looking to sell private label products on a larger scale should consider SupplyMeDirect. They offer high-quality products at affordable prices.
Honest FulPhilment
Honest FulPhilment provides you with the best dropshipping service. Including purchasing, packaging, branding, order fulfillment, and shipping. We source from vetted suppliers in China, return sourcing quotes in 4–5 days, and quality check 20% of units by default. Our app can also be integrated with your Shopify store, so your customers can place orders directly and we will fulfill them automatically. We also provide customized services, customizing your brand packaging and labels, including private label, custom packaging, inserts and kitting to build your brand.
Conclusion
If your dropshipping business needs private labeling services, please contact us.
FAQ
What is private label dropshipping?
Private label dropshipping means selling products made by a supplier under your own brand name, logo and packaging, while the supplier or fulfillment agent stores the goods and ships each order directly to your customers. You build a brand without running your own warehouse.
What is the difference between dropshipping and private label?
In regular dropshipping you sell a supplier's generic products as they are. With private label, the products are made or branded to your specifications and carry your brand. Private label usually needs a minimum order and some upfront stock, but builds customer loyalty and higher margins.
Is private label dropshipping profitable?
It can be more profitable than generic dropshipping because branded products are harder to compare on price and encourage repeat buyers. Profit depends on product choice, branding costs, minimum order quantities and marketing spend.
Where can I find private label dropshipping suppliers?
Alibaba has many manufacturers that offer low-cost private labeling, though minimum orders can be high. AliExpress can connect you with suppliers but does not label products itself. A China-based dropshipping agent can source the product, add your logo and packaging, store the stock and ship orders for you.
Do I need inventory for private label dropshipping?
You usually pay for a first batch of branded products because they must be produced or labeled in advance, but you do not have to store or ship them yourself. The supplier or fulfillment agent holds the stock and ships each order.